Tesla's European car sales nosedive for fifth month as customers switch to Chinese EVs

Core Insights - Tesla's new car sales in Europe have declined for five consecutive months, with a significant drop of 27.9% year-on-year in May, totaling 13,863 units sold [2] - The company's market share in Europe has decreased from 1.8% in May 2024 to 1.2% in May 2025, indicating a downward trend in the region [2] - The decline in sales is attributed to increased competition from cheaper Chinese electric vehicles, which have gained market share despite EU tariffs [4] Sales Performance - In May, Tesla's sales in Europe fell to 13,863 units, marking a 27.9% decrease compared to the previous year [2] - Chinese automakers sold 65,808 units in the same month, more than doubling their market share to 5.9% [4] - Tesla's sales performance is further challenged by traditional automakers and the rise of competitors like BYD, which recently outsold Tesla in pure electric car sales in Europe for the first time [4] Brand and Reputation - Tesla's brand and reputation have suffered due to CEO Elon Musk's controversial political activities and rhetoric, leading to protests at Tesla dealerships across Europe [2][3] - Musk's financial support for U.S. President Donald Trump and subsequent political initiatives have contributed to the backlash against the company [3] Product Impact - The revamped Model Y was expected to help improve Tesla's sales performance, with indications that it has positively impacted new car sales in Norway [5]